Insurance Broker InformationAn insurance broker bond is a type of license and permit bond which guarantees that insurance brokers account for insurance premiums they collect. It also guarantees that they will develop risk mitigation strategies faithfully and in accordance with state regulations. This bond protects individuals who may be harmed by the actions of a licensed insurance broker. It is required by the state department of insurance upon applying for an insurance broker license and throughout the duration of the license. Cases in which a claim can be filed against an insurance broker bond include:
- Collecting premiums for non-existent insurance policies
- Manipulating rates and collecting higher premiums
- Misleading clients to obtain insurance policies they do not need
- Encouraging clients to lie about personal details in insurance applications
- Encouraging clients to conceal and misrepresent their financial status in insurance applications
Three party agreement
Surety Bond Definition: The definition of a surety bond is as follows: A surety bond is a binding agreement between three parties. This agreement sets forth a financial guarantee by one party ( “surety” ) to another party ( “obligee” ) that a third party ( “principal” ) will fulfill required obligations to the obligee, and that state, federal, and local laws and applicable regulations will be adhered to. Let’s examine each of the three parties.Learn more about surety bonds
Bad Credit – Fast Approvals – Lowest Rates Available.
- Credit below 650 and/or have blemishes on credit report.
- Average cost is 5-15% of the bond amount.
- Available for all commercial bonds.
Why does credit matter? Applying for a surety bond is similar to applying for a loan. You are asking a surety company to back you financially. Reviewing credit is the best method for the surety to understand their risk. All sureties review credit as a view only and should have no effect on your credit score. While it is true that bad credit makes it harder to obtain a competitive quote, we are committed to making sure all of our customers have access to the best possible rates. While we can’t guarantee that we can provide a bond for the most extreme bad credit situations, we strive to make sure no stone is unturned! In other words, if you are insurable, we will get it written. Contact us today and let us put together an online quote for you that will exceed your expectations.